Shein's Carbon Emissions Skyrocket: What's Behind the Surge?

Despite climate-friendly claims, fast fashion giant Shein is once again in the spotlight for a drastic increase in carbon emissions in 2024

The fashion industry accounts for around 8% of global greenhouse gas emissions. It is one of the largest contributors to pollution worldwide and a significant consumer of water. The David Suzuki Foundation, a non-profit environmental organization based in Canada, reported that clothing consumption has increased by 400% over the past 20 years, with approximately 80 billion units of clothing sold annually.

In the world of fast fashion, Shein may be one of the most talked-about brands. From concerns over workers’ rights to TikTok “hauls,” the Chinese fast fashion giant is constantly in the media. Now, Shein is once again facing greenwashing allegations as its carbon emissions have exploded in 2024.

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Shein’s Carbon Emissions in 2024: The Big Picture

Shein’s 2024 sustainability report indicated that the company generated 26,201,440 metric tonnes of carbon dioxide emissions in 2024, a 23.1% increase from the previous year. Its carbon emissions in the transportation sector increased by 13.7% in 2024, and the reported 2023 emissions were recalculated to be 18% higher than initially reported.

Despite numerous claims about reducing its carbon footprint, Shein’s footprint continued to grow. Stand.earth, a non-profit organization committed to holding corporations accountable for their environmental impact, released a report last month highlighting 42 fashion brands. They cited Shein as the biggest polluter, claiming that:

“If SHEIN were a country, it would be the 100th biggest emitter in the world, almost as much pollution as the entire country of Lebanon, having increased Scope 3 emissions by over 170% in just two years.”

So, what caused this dramatic jump in carbon emissions?

‘Ultra-fast fashion’: Shein’s On-Demand Business Model

To understand this surge in emissions, we must first examine Shein’s business model. Without factories of its own, Shein collaborates with over 7,000 factories throughout China. This enables the company to continuously diversify its products, creating thousands of new, trendy garments each day.

This “on-demand” business model prevents the company from having excess inventory, a factor that the company has used in support of its climate goals.

Often, when buying something on Shein, the product hasn’t even been created yet. New York Times reporter Meaghan Tobin said that “instead of fast fashion, [Shein] is more like ultra fast fashion.” In a trip to Guangzhou, Tobin witnessed how the company’s reach spans across factories, with zippers being applied in one factory and elastic waistbands being sewn into garments in another.

Fabric Choices and Supply Chain Emissions

In addition to a widespread network of factories, Shein relies heavily on polyester, a synthetic fabric, to produce its garments. Although the company is making an effort to use recycled fabrics, professionals claim that the amount of recycled polyester is significantly eclipsed by the extensive amount of polyester produced by the company.

Supply chain emissions are the most significant contributor to the company’s total carbon emissions, creating 11,201,419 metric tonnes of carbon dioxide in 2024. Experts argue that without a complete transformation of the business model, Shein’s emissions will continue to grow.

Shein pop-up stores are an exception to the direct-to-consumer strategy. Photo credit: Wikimedia Commons

Soaring Logistics Emissions: Shein’s Reliance on Air Freight

Unlike other fast fashion brands that have physical stores across the globe, Shein ships directly to consumers. To ensure this happens quickly and efficiently, it relies heavily on air carriers to transport goods. Transportation represents Shein’s second-largest source of emissions.

Over the last two years, Shein has seen a 200% increase in its logistics emissions. The report published by Stand.earth highlighted these transportation emissions, citing that in 2023, shipping made up 40% of its Scope 3 emissions.

Shipping emissions for Inditex, Zara’s parent company, account for 20% of its total carbon footprint. Last year, the company switched to more aviation shipping, resulting in a 10% increase in its carbon emissions. Nevertheless, Shein’s carbon emissions were three times more than Inditex’s. On the other hand, H&M’s logistics emissions accounted for 5.2% of total emissions, as the company limits its use of aviation.

In 2024, Shein emitted 8,519,829 metric tonnes of carbon dioxide in upstream transportation alone, equivalent to the annual energy consumption of approximately 1.1 million households. The company, despite increasing pressures, shows little indication of switching its current shipping methods.

Although it has begun operations in Turkey and Brazil in an effort to move production closer to consumers, according to the company, the bulk of production still takes place in China. Shein claims to have increased its use of trucking and marine shipping in 2024, but the carbon emissions numbers don’t reflect this change.

U.S.-China Tariffs

Due to the exceptionally low prices, Shein has been able to import to the U.S. using the de minimis exemption. This loophole, Latin for “about minimal things,” was designed to benefit small business owners and allowed shipments valued below $800 to enter the U.S. tax-free. Last year, around 4 million packages entered the United States each day with no tariffs or customs inspection.

With the Trump administration cracking down on tariffs, the loophole has been closed, adding steep tariffs to products that had previously been exempt. This inevitably raises the price of goods bought on Shein.

Shein immediately saw a decrease in sales, with factories typically making 100,000 garments a month now making 60,000. To avoid these tariffs and revive sales, Shein is shifting its focus to the European market. However, it might not be welcomed with open arms.

France’s Anti-Fast Fashion Bill

Last week, France approved a bill targeting ultra-fast fashion industries with an overwhelming 337 to 1 vote. The bill proposes advertising bans, stricter rules for sustainability disclosures, and higher taxes, aiming to combat waste and mitigate the industry’s negative environmental impact.

“This could be the start of a new beginning,” Vojtech Vosecky, Founder of The Circular Economist, posted on LinkedIn.

This bill aims to discourage fast fashion spending and support sustainable French fashion producers. It outlines that, beginning this year, items sold by fast fashion brands will incur a €5 tax, increasing to €10 by 2030.

With all of these factors working against Shein, the future of the fast fashion giant is unclear. For business leaders, Shein’s constant media coverage serves as a case study on the importance of transparency and accountability in achieving climate goals and reducing its carbon emissions.

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Shein branded boxes are displayed in a shopping cart. Cover Photo Credit: Dick Thomas Johnson.